AMF assesses the social, societal and environmental responsibility information published by listed companies

17 November 2016

The report highlights best practices in terms of non-financial information and presents recommendations on the transparency and coherence of the information. The AMF also published its annual report on corporate governance and executive remuneration of listed companies.

The AMF analysed the environmental and social responsibility information published by a sample of 60 listed companies (including 30 small and midsized companies) in their 2015 registration documents.

The AMF noted that French listed companies—be they large or small—dedicate increased resources invested in this matter regarding time, resource allocation and development of new monitoring tools. It also transpires that, beyond the regulatory framework, issuers were increasingly committed to long-term targets, used clearer and more relevant indicators and tended, for some companies, to present information including financial and non-financial data. Nevertheless, companies could still adopt a more pragmatic approach so they can better identify or prioritise the information to be included in their “ESR strategy” and ultimately in their reporting.

The AMF’s main observations were as follows:

• An average of 33 pages were dedicated to ESR, which is a 40% increase compared to 2013;
• The methodological transparency of indicators, which appeared to be a strong point for French issuers, even if their comparability between issuers could be improved further;
• Large companies made considerable efforts to define quantified targets, which provided a framework for their ESR policy, but their monitoring over time could be improved;
• Several issuers now disclose non-financial elements as part of their financial reporting (compared to none in 2013);
• Large companies were much more interested in materiality studies and presenting them in the form of “materiality matrices”;
• ESR has increasingly been placed at the core of issuers’ strategy and considered a real driver of long-term performance;
• Large companies have been increasingly committed to approaches that include non-financial issues.

In light of this analysis, the AMF has issued four new recommendations:

1.    Increase the relevance of non-financial information;

2.    Better describe the role of ESR in the company’s strategy;

3.    Reflect on ways to present financial and non-financial information in a coherent fashion. The AMF favours a more integrated approach when this enables investors to better assess the value creation strategy and overall performance of the company. Given the diversity of approaches, the AMF has chosen not to recommend a particular reporting format or reference framework, but it is in favour of such a report being included in the registration document;

4.    Improve disclosure with respect to green bond issues, by notably ensuring the transparency of information given both when the bonds are issued and over the life of the bonds.

Full press release

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